The Rest of 2020
While unemployment is still high and the overall economy is slowly crawling its way out of a forced stoppage, housing has been a bright spot with a “V-Shaped” recovery. It came roaring back and trends have emerged that pave the way to a strong finish to 2020 in Orange County:
The active listing inventory has dropped to unprecedentedly low levels.
Even at the start of the year, there were not that many homes on the market. Anything that did come on the market quickly opened escrow. Even prior to the shutdown, the inventory had only increased from 3,901 at the beginning of January to 4,159 by March 5th, an increase of only 7%. In March, it was at low levels last experienced in 2013. During the lockdown, COVID-19 suppressed the number of homeowners coming on the market. In April, there were 54% fewer homes that came on the market compared to the ORANGE COUNTY HOUSING REPORT | The Rest of 2020 5-year average. Today, there are only 6% fewer homes entering the fray. COVID-19’s grip on preventing homeowners from listing their homes is disappearing.
Demand is at its hottest level since 2012.
Prior to the virus lockdown at the start of March, with 3.75% interest rates, demand (the last 30-days of pending sales) had reached 2,583 pending sales, levels not seen since 2015. Amid the lockdown, COVID-19 suppressed buyer activity and demand dropped to 1,008 pending sales in mid-April, a low last hit in 2008 during the Great Recession. However, the real estate industry adapted and became an essential service. Demand had doubled from its April lows by the end of May and had tripled by the start of July.
Click on the image below the Read the Orange County Housing Report.